Overview
- High Courts in Rajasthan and Telangana ruled that freezing entire bank accounts violates fundamental rights when investigators cannot show a direct link to an alleged crime.
- In the case involving Shwetambari and Vikram Bhatt, the Rajasthan bench said only about Rs 30 crore in dispute could be restrained rather than blocking all their accounts.
- The Rajasthan order recorded that the full freeze had stalled daily expenses, salaries and loan payments for the petitioners.
- Telangana High Court directed Kotak Mahindra Bank to keep only the quantified disputed amount on hold in The Bottle Restaurant and Bar’s account, allowing other lawful transactions.
- Both courts called account freezes an exceptional step and ordered prompt court intimation and partial de-freezing by police and banks, setting a safeguard that could guide future investigations.